Polish retailer LPP SA posts 60% increase in revenue of 3Q21/22

LPP’s online sales doubled to PLN 906.8 million, the company said in a media release.

There has been a double-digit rise in the number of visits to the brands' websites and a triple-digit increase in the number of returning customers in comparison with the prior year’s same quarter. The gross margin of Q3 21/22 also increased significantly on year-on-year (YoY) basis due to favourable purchase prices for orders for the Autumn/Winter collection, increased sales prices and growing foreign revenues and lower availability of goods on the market and related lower YoY discounts.

The net income also increased in the third quarter to PLN 627.6 million from PLN 246.9 million in Q3 FY21.

All the brands under the company generated more revenues from foreign than from domestic operations. The revenue from Europe grew by 74 per cent on YOY basis while the CIS countries generated a revenue growth of 73 per cent on YOY basis.

The Reserved brand grew by 38.7 per cent, Cropp grew by 29.2 per cent, House grew by 23 per cent, Mohito grew by 58.8 per cent and Sinsay grew by 144.9 per cent, on YOY basis. There has been a significant growth at Sinsay due to floorspace expansion.

The inventory of the company also increased by 80.2 per cent compared to corresponding quarter of the last fiscal. The growth is driven by greater stocking for the planned floorspace growth (new stores) and acceleration of orders for goods from the Spring/Summer 2022 collection due to extended delivery times for goods from Asia.

Based on the performance of the third quarter, the company is targeting to open stores of all 5 LPP brands in Albania in 2022/23 and planning to open the stores with 6,000 m² of floorspace in H2 22/23.

Fibre2Fashion News Desk (DD)